Public Information:

Contract
Relationship
Options

1. Design-Bid-Build
(Traditional method): This is a good option
for possible construction savings. The owner
initiates a contract with the architect and defers General
Contractor
services
way until blueprints are complete. The architect's tied directly to
the owner from start to finish and the owner chooses their own contractors. The architect
(design
professional)
prepares construction documents with his engineering team
so the
project can be
submitted for permits and sent out to competitive bid. The
architect assist the bid competitive process while representing the
owner in his selection process. This
method sometimes has higher design costs, yet it lowers
construction costs
substantially by securing competitive bids in the climate
of a
construction
bid-war. The merit to this method is that it can reduce
overall project
cost
while also having close representation with owner/architect in the
total process
sequence.

2. Owner-Build (On
Your
Own)
Although
not
recommended,
the owner could contract
separately with the contractors of each trade. The owner
takes the
lead role
and is responsible for getting bids and acts as
construction manager,
coordinating the work of individual subcontractors. You
would think
this has
potentially the
lowest cost, but it
may have the highest cost assuming risk of things going
wrong. In this
case, the owner assumes the role of
the
General Contractor and saves the General Contractor's
fee
(approximately 10%
of construction cost). The pitfall is that it can result
in project
overruns if
the owner fails to control costs throughout the bid and
construction
management
processes. The owner will often piggyback a construction
manager onto
the
project or ask for special services from the architect
which could add
more cost than the 10% savings. This option
potentially
has the longest time frame for project completion,
depending on the
owner's
knowledge and how much time the owner has available to
work on. The
owner has to factor in the cost of his/her own time as
well which
always
is counter productive.
Subcontractors may not be loyal to owners as they would be
for there
Que of repeat work than with a General
Contractor. Also, the
quality of
construction work may be hampered due to inadequate
coordination
between
overlapping trades. This is more likely to result in
additional cost
than other
contracting methods.

3. Design-Build
(Turnkey): This gives the owner the best control of cost of where its
all going from the
onset while leaving less leg work for the owner from start to finish.
The owner
contracts with either one
single entity or parallel contracts for both design and
construction (Usually an architect and general contractor work both
side-by-side). Avoid using a
designer or any unlicensed draftsman as this leaves
potential holes with no recourse. An architect team gathers his
engineers and with the General contractors and work together in the
design/build progression. The contractor will
establish his cost based on the known
information so that as the project develops in time, the Contractor can
provide
progressive levels of information from probable cost (rough guestimate)
to a
final guarantee cost once arrived to reaching all the engineering
portions of
the final drawings. From schematic to design
development phase and into final documents, the contractor will work
intimately with owner and architect from each phase that offer ways to
exercise
in finding the most cost-effective ways. By means and method, a marriage
to products with labor arise efficiently. This control of of project
cost keeps it most efficiently in real-time.The good news to design build is that its a fast tract
process getting quick answers for cost from
the General Contractor/his subs and his sub-subs without going through additional last minute rebids, changes and
alternatives that interrupts the project at the tail end. may even eliminate some of those pesty change
orders. As results, this
relationship offers the best
control of
design and
construction quality to assure proper control. However
design-build does not have to be for everyone as it does take
trust when the contractor provides numbers outside the competitive
market where in this case unless the owner chooses to change their mind
and entertained in terminating the contractor, they could return
back to competitive pricing.

4. Pre-manufactured
Home
(Vendor Relationship)Has
potential low
construction cost but could limit resale value. Construction materials may be required
to meet state, local and including county
fire codes as there is little or no flexibility to comply . Many areas may not allow such
construction due
to zoning
issues. Potentially the quickest construction
erection if desired model
is
available, yet are limited by the
manufacturers schedules. The
choose of products. material and finishes are very limited including
the plumbing/lighting fixtures so the design options may not be there. Remodeling/retrofitting
may be challenging thus lacking
some flexibility
for the future alteration or additions since its a
manufacturer item from unlike
conventional field
construction. Financing institutions may not
always providing
construction loans beyond the property value which
means it takes more
capital as should,be verified with loaning
institutions limitations as well as future refi loans as shopping rates
from banks may be limited or expensive. Remember
the quotes you get from modular designers does not include total cost
for site retrofit, utilities, foundations to name a few. Yet, with newer
technologies and some custom options expanding, the confidence level
might change over time.